Acquisition enhances strategic European platform
Laval, Québec – February 11, 2008 – 20-20 Technologies Inc. (TSX: TWT), the world leader in 3D interior design and furniture manufacturing software, today announced it has successfully completed the acquisition of the Planit* Fusion business from Planit Holdings Limited for cash consideration of US$38 million. The transaction will be financed through a combination of cash on hand and by accessing US$15 million of a US$25 million revolving, five-year credit facility provided by TD Bank Financial Group.
Planit* Fusion, formerly 20-20’s largest worldwide competitor, markets software products and services very similar to those of 20-20 and has 98 employees and 14 distributors active mainly in Europe. It offers interior design programs providing essential sales management tools to dealers, designers, retailers, homebuilders and remodelers that sell kitchen, bath and bedroom projects.
Planit* Fusion’s market share in key European countries is complementary to 20-20’s, and it is expected that on a pro-forma basis about 40% of the Company’s revenues will come from Europe.
“From a strategic standpoint, we believe this acquisition will help us maintain and accelerate our operational momentum on a worldwide basis,” said Jean Mignault, Chief Executive Officer of 20-20 Technologies. “This acquisition also enhances the cross selling opportunities for point-of-sale, Web-based and manufacturing solutions. We are bringing together the development teams from 20-20 and Planit* Fusion, the experts that built two of the best kitchen and bath software programs in the world.”
The acquisition and the integration of Planit* Fusion’s U.K. and French subsidiaries will extend to Europe, 20-20’s leadership position in North America. The Company’s collaboration with Planit* Fusion’s distributors creates one of the largest and most diversified interior design technology providers across Europe.
“Our method of financing this transaction offers superior financial flexibility to manage our continuing operations and consider additional growth opportunities, while leveraging the strength of our balance sheet,” said Steve Perrone, Chief Financial Officer of 20 20 Technologies. “We will begin to see the benefits of this transaction with the second quarter of fiscal 2008.”
About 20-20 Technologies Inc.
20-20 Technologies is the world's leading provider of computer-aided design, business and manufacturing software solutions tailored for the interior design and furniture industries. Dealers and retailers use its desktop and Web-based products and solutions for the residential and commercial markets. 20-20 also offers a unique proprietary end to end solution, integrating the entire breadth of functions in interior design through one platform. It provides a bridge between data communication from a point-of-sale to manufacturing and world-leading enterprise resource planning (ERP) systems, including computer-aided engineering and plant floor automation software. Operating in 13 countries with more than 600 employees, 20-20 is a publicly traded company (TWT) on the Toronto Stock Exchange (TSX). For more information, visit www.2020Technologies.com.
Certain statements contained in this news release constitute forward-looking information within the meaning of securities laws.
Implicit in this information, particularly in respect of future operating results and economic performance of the Company are assumptions regarding projected revenue and expenses. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general economic, market and business conditions and could differ materially from what is currently expected.
For more exhaustive information on these risks and uncertainties you should refer to our most recently filed annual information form which is available at www.sedar.com. Forward looking information contained in this report is based on management’s current estimates, expectations and projections, which management believes are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time unless required by applicable securities law.
*Planit is a Trademark used under Licence from Planit Holdings Limited
Chief Executive Officer
Laval: +1 (514) 332-4110
Chief Financial Officer
Laval: +1 (514) 332-4110